Refund Query Cont. 1

Refund Query Cont. 1

Question:

Transaction was in Rands. Value of goods was in Riyals and was converted to Rands and paid for in Rands.

Seller wants to value the goods at current Riyals rate to refund the buyer.

Amount owing will be less now than what the buyer paid because Riyals value was higher then when goods were purchased. So the Rand rate was more too.

Rate of Riyals when goods were purchased was R4.48 per Riyal

Now it’s R4.33 per Riyal.

Refund in Rands will be lesser now.

Transaction was in Rands.

Seller did mention that if the goods are not selling then the buyer can return them.

Answer:

In the name of Allah, Most Compassionate, Most Merciful,

As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.

We are still having difficulty understanding the situation. We don’t understand why the goods were purchased in Rands at Riyals value. Thus, in order for us to advise, we further require the following clarifications:

1) Where were you located and where was the seller located?

2) Was the transaction agreed upon an “x” amount of Riyals and thereafter paid for in Rands according to the exchange rate? If not, please explain step by step how the transaction was done.

3) In what currency did the seller receive the payment? Did he receive Rands or Riyals?

4) What was the purpose of the evaluation of goods in Riyals?

5) Why was the transaction not done directly in Rands without considering the Riyal value?

Please clarify clearly. We will advise further.

And Allah Ta’āla Knows Best

Hammad Ibn Ismail Jogiat

Student - Darul Iftaa

Cambridge, Ontario, Canada

Checked and Approved by,

Mufti Ebrahim Desai.

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